Remortgaging help!

aimrie

Hi, I am coming to the end of my 2 year fixed deal and I am in the period with Nationwide where I can switch to a new deal with them but not yet to another lender for a couple of months. I was looking at getting in early and onto a new fixed deal before the interest rates change.
I am aware that if I switched lender they would need to re-value my property I also thought this was the case with my current lender but when I started a switch online they are using my property value from 2 years ago. I know that the property value has risen and will put me into a lower LTV bracket and lower my monthly payments significantly. Is this when I need to accept I need to wait and change lender or if I phone up Nationwide will they consider a mortgage switch on the value of my house today? Thanks in advance.

copperclock

I thought that they based the value on their own House Price Index??

aimrie

They ceerainly don't when you go through the switch process online. I even used the calculator on their website and according to them my house has risen £10k in the last 2 years. Enough to push me into the lower LTV.

copperclock

Hm. Maybe phone them? I will be in your position in a couple of months so this is a worry to me as well.

aimrie

I plan to give them a call tomorrow. Just wondered if anyone on here had an experience in a similar situation.

copperclock

Just been routing around on the internet about this problem. Can I ask: how do you know that they are using the valuation from 2 years ago? Does it say it there on the screen, or have you deduced that from the rates they are offering you?

If the latter, it might be that they have done a new 'desktop valuation' on your house, but it's not as high as you think it should be.

Hopefully somebody who knows more than me will be along.

aimrie

It doesn't say I have just assumed but I only need my house to be worth £1500 more than it was 2 years ago and I'm pretty sure house prices have only gone up and the house was valued at £225,000 2 years ago that is why I am confused. Unless for some weird reason my house has lost value but I don't know why it would have!
As I say when I put into Nationwide HPI calculator and put my location they value it at £234,800 which is way beyond what I would expect or need to get me into the lower catagory!

aimrie

Just to update the situation for anyone else who finds themselves in the same position.
I phoned up Nationwide yesterday who told me that they now valued my house at £217,000 even though they valued it at £225,000 2 years ago. I was confused and asked how they had this valuation and they said it was from HPI and sources like Zoopla when I told them the house price had gone up on both of these tools and also other houses in the area were generally selling for more they couldn't tell me why they had that valuation.
They then allowed me to put in an appeal for the valuation and returned with a valuation of £230,000 and I was able to switch to my preferred mortgage online after that. Just goes to show you though not to accept what they tell you and challenge anything if you don't think it is correct.